Society's demand for Corporate Social Responsibility(CSR) is higher than ever before. In the past, companies were judged mainly by their financial performance but these days they are expected to be both socially and environmentally responsible in the ...
Society's demand for Corporate Social Responsibility(CSR) is higher than ever before. In the past, companies were judged mainly by their financial performance but these days they are expected to be both socially and environmentally responsible in the way of running business. In response to this rising social demand, many leading multi-national companies are making significant efforts to integrate CSR into all aspects of their business, in the process enhancing their own corporate image and reputation. The importance of corporate philanthropy cannot be stressed enough, for it is becoming one of the key elements in assessing overall corporate competitiveness. In that sense, in this day and age, corporate philanthropy can no longer be taken as a safe option, but rather as a prerequisite 'must' for most companies.
In the case of Korean companies, though they are investing more and more in charitable causes, a challenge still exists when it comes to the approach of such philanthropic efforts. This research aims to identify the critical factors involved in the effective management of corporate philanthropy, through a study of best practices in CSR. Key findings are as follows.
First of all, in order for companies to benefit from the adoption and practice of CSR corporate philanthropy should be recognized as a long-term commitment and whenever possible, associated with a company's direct line of business. In addition, corporate philanthropy should be aimed at creating social value, by allowing companies to address and solve pressing social problems, thus improving our quality of life. Hence, corporate philanthropy should be implemented in a strategic manner that aims to create social value while enhancing corporate competitiveness, as opposed to a mere gesture of goodwill-however well intended-such as donation of funds.
Support and assistance from various sectors in and outside the company is an integral part of effective corporate philanthropy. With respect to organization, a department consisting of experts from social welfare, marketing and public relations should be set up, for the sole purpose and function of co게orate philanthropy. In addition, companies should encourage their employees to engage in philanthropic programs. In order to attain the ultimate goal, it is imperative to gain the full support of high-level executives and make them understand the importance of CSR in corporate management. Networking with other non-profit organizations and various industry sectors who share common ideals and goals on CSR is equally important. This way, synergy can be generated in the process of managing professional staff and allocating budget. Simultaneously, communication activities such as the launch of advertising and public relations campaigns, followed by regular social reports on CSR are necessary, for they allow the public to know what companies are doing for society, encouraging them to participate in philanthropic programs that build trust in the company.
With this as a backdrop, I hope Korean companies develop and implement CSR programs that enable them to create social values, leading to the enhancement of corporate competitiveness and sustainable social development in the long run.